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LIC HFL’s LAP and Other Credit Details Explained Here

LIC Housing Finance Limited (LIC HFL) ranks among the largest housing finance companies in India. Incorporated in 1989, the company’s main objective is to provide finance for the purchase or construction of flats for residential purposes. Though providing home loans is its primary task, the housing finance firm has also expanded its wing by providing loan against property, loan against securities, etc. So if you are interested in applying for those loans, you should know them in detail. The article on LIC HFL can only help you in enjoying a smooth approval by providing you the details.

Loan Against Property

The loan can be granted against the mortgage of a residential house or flat for purposes such as education and marriage of children, expansion of business, purchase of another property, etc. Equitable mortgage of the property is sought with the age of that possession must not be more than 35 years. Also, a demand promissory note is required. You can get a minimum loan of ₹2,00,000 for a maximum of 15 years. However, the maximum quantum of finance is subject to your earning, credit score and repayment potential. The LIC HFL home loan interest rates can be based on loan amount, tenure, income, etc. Since it is a property-backed loan, the interest rates can be lower than what’s offered in the case of an unsecured loan. As far as processing fee is concerned, it’s 1% of the loan amount plus applicable GST, which stands for Goods and Services Tax.

Loans to Professionals

The loan is given to resident Indian professionals for purchasing, extending, modifying or even renovating commercial premises for carrying out their own practice. Based on your eligibility in terms of income, credit score and repayment capability, loan amount and interest rates will be decided by the lender. The loan can be given for a maximum of 10 years. Securities to be submitted for the loan include equitable or registered mortgage of the premise for which the loan is availed, demand promissory note, Registration of Companies (ROC), personal guarantee of partners (partnership firm) or directors (companies), hypothecation of property

Loan Against Securities

So if you have any fixed deposit running in nationalized banks, you can get a loan against that. Even life insurance policies with surrender value, postal deposits such as National Savings Certificate (NSC) and Kisan Vikas Patra can help you get a loan. The loan can be granted up to 95% of the security value for a maximum of 20 years. However, the minimum loan that you can expect is ₹50,000.

LIC HFL Loan EMI Calculator

It’s good to know beforehand the EMI you are likely to pay as it’s gonna be a regular fixture till the time the loan is paid in full. The equated monthly installment or EMI is an addition of interest and principal amount that get paid to the lender every month till the expiry of the tenure. In the case of late payment, the tenure only enhances and lead to around 2% penalty charges. Reading this brief would most probably tickle you to get an insight of the EMI calculation. Yes, the calculator is available online to let you calculate the installment without any hassle. All that you need is to enter the amount of loan, interest rate and tenure in the calculator, which would then showcase the result. So, whatever the EMI amount would be, you will get to see it on the screen. As EMI constitutes interest, you can also see the total of interest to be paid via installments. So when you see the EMI estimates in advance, it makes your work of managing the finance that much easier.

LIC HFL Loan Amortization Calculator

Just beside the results of LIC HFL EMI calculator, you can get a glimpse of your loan amortization. The schedule of interest and principal repayments would be flashed on the screen. In addition, you can check the outstanding loan balance at the end of every year. You can thus take a note of that to plan a possible prepayment, which means the payment of a loan before it gets over. Investing in potentially higher return products like mutual fund can help you reach a level where paying the outstanding balance of a loan can be possible.